Day before Thanksgiving holiday usually bullish | 7260 7235 7214 support | 7312 7350 resistance

Day before Thanksgiving holiday usually bullish | 7260 7235 7214 support | 7312 7350 resistance

FTSE 100 Analysis | Trading Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

The FTSE 100 has closed 0.1pc higher at 7,266, outperforming its fellow European indices thanks to a recovery in the oil price. Energy giants BP and Royal Dutch Shell both advanced 1pc, although the top riser was Compass with a 5.6pc jump.  The catering giant impressed investors with higher-than-expected full-year profits and a return to dividend payments.

Safety equipment group Halma and online grocery retailer Ocado were the top fallers, down 5.7pc and 4.8pc respectively.

Asia
Stocks were mixed Wednesday and Treasury yields declined as traders weighed economic risks from tighter monetary policy while awaiting key U.S. data as well as the latest Federal Reserve minutes.

MSCI Inc.’s Asia-Pacific share gauge fell for a third day, sapped by Japan. U.S. futures fluctuated and European contracts rose. Energy and financials helped the S&P 500 eke out a gain overnight, while the Nasdaq 100 extended a drop. A slew of reports are due later on U.S. economic activity and the cost of living.
A climb in Treasuries unwound much of their overnight slide. The prospect of the Fed reducing stimulus more quickly to fight price pressures has tempered bond market inflation expectations, though they remain historically elevated.

Damping inflation is now center-stage for policy makers, posing a test for markets as ultra-loose, pandemic-era monetary settings are tightened. The U.S. data and the Fed minutes will give investors a read on price pressures and the economic recovery, potentially buffeting markets.

FTSE 100 live outlook prediction analysis for 24th November 2021

The FTSE100 remained in the range between 7200 and 7275 yesterday for the most part with a brief move up to 7290 before retracing. Statistically today is bullish circa 70% of the time prior to the Thanksgiving holiday, so we may well see another push for the S&P500 towards the 4700 level. We do have the red 2h coral at 4703 currently so we may well see a stutter here and I am thinking that this morning we rise to there, dip a bit then see some more bullishness this afternoon.

For the FTSE100, the bulls have managed to build on the rise from the 7200 level and we saw a good hold of that again yesterday. As such the 2 hour chart is looking more bullish with support down at 7235 – should we get that low then it would be good to see this level hold. Initial support is at the 7270 area where we have a cluster of supports – 200ema 30min, 30min coral and just above the daily pivot at 7260. We could see an initial kick up from this area to test the 7310 resistance level. We also have daily resistance at 7321, so a slight overshoot of this to tag the stops on those short at 7300, and then a bit of a slide down to the supports would work well.

Above the 7321 level (and this is also the top of the 10d Raff channel here) the bulls will be a bit bolder and look to take this back towards the 7400 level, with daily resistance at 7380 the next major hurdle.

For the bears, they will be looking to break it below the daily pivot at 7258, as that leads to 7235 as mentioned, and also the key fib at 7214. 7213 is also the daily coral which is the line that we climbed off yesterday at 7207. Second tests aren’t as reliable but if its tested we could see smaller bounce. Lets see if the US remains bullish today though!

7193 is the daily support lower down, and then 7150 below that. Not sure we will see that low today though, and it would be good to see the bulls try and defend 7260 to build on yesterdays move up.

Logically you would expect everything to be falling given the pessimistic backdrop at the moment, but the markets are certainly proving quite resilient. We may well remain that way till far end to lock in those Q4 bonuses and then a totally different picture next year!

Good luck today.


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